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2 years ago

How have graeter's owners used the four factors of production to build the business over time?

1 answer:

6 0

The Graeter's proprietors utilized the four elements of generation to fabricate the business after some time. The four components are arrive, work, capital, and business enterprise. The land is utilized on the grounds that they based the underlying start-up of the organization through their own particular home. They didn't utilize any cash attempting to set up their business.

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Lena Company has provided the following data (gnore income taxes); 2016 revenues were $77,000. 2016 expenses were $48,600. Divid

Ilya [14]

Answer:

Option (b) is correct.

Explanation:

(a) Net Income:

= Revenues - Expenses

= $77,000 - $48,600

= $ 28,400

(b) Retained earnings :

= Net Income - Dividend

= $ 28,400 - $7,700

= $20,700

= Total assets - Total Liabilities

= 185,000 - $105,000

= $80,000

Therefore, the retained earnings at December 31, 2016 were $20,700.

5 0

2 years ago

A proposed nuclear power plant will cost $2.2 billion to build and then will produce cash flows of $300 million a year for 15 ye

pochemuha

Answer:

Project NPV at 5% discount rate = $1346 .78

Project NPV at 18% discount rate = -597.4

Explanation:

Below is the given values:

Initial cost = $2.2 billion

Yearly cash inflow, A = $300 million

Time = 15 years

Salvage value, S = $900

Project NPV at 5% discount rate = A (P/A, 5%, 15) + S (P/F, 5%, 15) - Initial cost

Project NPV at 5% discount rate = 300 (P/A, 5%, 15) + 900 (P/F, 5%, 15) - $2.2 billion

Project NPV at 5% discount rate = 300 (10.3796) + 900 (0.4810) - $2.2 billion or 2200 million

Project NPV at 5% discount rate = $1346 .78

Now,

Project NPV at 18% discount rate = 300 (5.0915) + 900 (0.0835) - $2.2 billion or 2200 million

Project NPV at 18% discount rate = -597.4

4 0

2 years ago

Jackson Company produces plastic that is used for injection-molding applications such as gears for small motors. In 2016, the fi

valentina_108 [34]

Answer:

a.Income Statement using variable costing

2016 2017

Sales $7,872,000 $9,840,000

Less Cost of Sales ($1,338,240) ($1,672,800)

Opening Stock $0 $334,560

Add Cost of Goods Manufactured $1,672,800 $1,338,240

Less Closing Stock ($334,560) $0

Contribution $6,533,760 $8,167,200

Less Expenses :

Fixed manufacturing costs ($3,075,000) ($3,075,000)

Selling Expenses : Variable ($862,920) ($1,082,400)

Selling Expenses : Fixed ($500,000) ($500,000)

Net Income / (loss) $2,095,840 $3,509,800

b.Income Statement using absorption costing

2016 2017

Sales $7,872,000 $9,840,000

Less Cost of Sales ($3,798,240) ($5,362,800)

Opening Stock $0 $949,560

Add Cost of Goods Manufactured $4,747,800 $4,413,240

Less Closing Stock ($949,560) $0

Gross Profit $4,073,760 $4,477,200

Less Expenses :

Selling Expenses : Variable ($862,920) ($1,082,400)

Selling Expenses : Fixed ($500,000) ($500,000)

Net Income / (loss) $2,710,840 $2,894,800

c. Reconciliation of Absorption costing Net Income to variable costing profit

2016 2017

Absorption Costing Net Income $2,710,840 $2,894,800

Fixed Manufacturing Cost in Opening Stock $0 $615,000

Fixed Manufacturing Cost in Closing Stock ($615,000) $0

Variable Costing Net Income $2,095,840 $3,509,800

Explanation:

Part a.

Under Variable Costing, Only Variable Manufacturing Costs are treated as Product costs. Fixed Manufacturing costs and All Non-Manufacturing Costs are treated as period costs.

Part b

Under Absorption Costing, Both Variable Manufacturing Costs and Fixed Manufacturing costs are treated as Product costs. All Non-Manufacturing Costs are treated as period costs.

Part c.

The difference between the Net Income under Absorption Costing and Variable Costing is due to Fixed Manufacturing Costs that are deferred in Inventory. This needs to be reconciled accordingly.

5 0

3 years ago

On average, managers spend the least amount of time doing which managerial activity?

Aleks [24]

On average, managers spend the least amount of time doing the managerial activity is networking.

What is networking?

Networking is the technique of making connections with respect of the business environment. Managers very often get involved in developing relationships and making their own networks. They are accountable for monitoring and completing the given task in an effective way. So, they basically focus on many managerial activities like decision-making, planning things, communicating the required information, managing employees, etc.

Which managerial function is the most important?

The most important function of management is Planning. Planning means setting objectives in order to achieve , a goal in a limited time period .Several alternatives are formulated in order to achieve the goals.

Learn more about managerial activity:

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6 0

1 year ago

______________________ argues that the productivity of workers will increase if they are paid more, and so employers will often

kifflom [539]

Answer: Efficiency wage theory

Explanation:

The efficiency wage theory is refers to the labor economics that argues about the wages fir the labor or workers in the market.

The main aim of the efficient wage theory is that it helps in increase the efficiency and the labor productivity by reducing the cost of the turnover in industries.

This theory is mainly developed by the Alfred Marshall as they denote the wages per unit labor efficiency. Therefore, the efficiency wage theory is the correct answer.

7 0

2 years ago